Economic director: Residents need to back commercial growth efforts

After serving as West Palm Beach’s executive director of economic development for six months, Alan Durham believes the city is primed to become an economic hub — if only its residents would let it.

Durham

“One of the big problems I see in the city of West Palm Beach, and it seems to be extreme here, is community opposition,” said Durham, who was the speaker at Tuesday’s Economic Forum of Palm Beach County luncheon.

“I’ve heard the mayor say before on several occasions that the city of West Palm Beach is open for business, open to business,” he said. “That is the right mindset for economic development and growth. But project after project seems to be delayed. A lot of that is due to neighborhood resistance, people saying no.”

Durham’s comments came a day after commissioners agreed to hold off on a referendum to give the old city hall site an exemption to the five-story limit for buildings east of Olive Avenue between Okeechobee Boulevard and Seventh Street. Commissioners, who have the power to give the site an exemption without voter approval, want a building up to 15 stories that would include hotel rooms, condos or apartments and retail. But city staff said an internal poll showed only 39.5 percent of residents favor an exemption.

The city has also held off on approving 20- and 21-story condo towers on North Flagler Drive because of neighborhood opposition.

Durham said there is also opposition to a plan to turn the north golf course of the President Country Club into a mix of new commercial development — the largest redevelopment project in the city since CityPlace. The project, surrounded by the Land of Presidents housing community, has already been approved by the city’s planning board and is scheduled to go in front of the commission next month.

Nancy Pullum, a neighborhood activist, criticized the city at Monday’s commission meeting for saying residents need to be “educated” about the height exemption.

On Tuesday, Pullum said of Durham’s remarks: “I don’t see neighborhoods saying no. I see them saying can we adjust it, can we work together?”

Bruce Lewis, chairman of the Black Chamber of Commerce of Palm Beach County, said it’s up to commissioners to make some decisions that will be unpopular with residents. “Sometimes they get a little phobia with doing that and sometimes elected officials have to do things a little differently in the name of progress and moving forward,” Lewis said.

Commercial real estate broker Rebel Cook, president of the Economic Forum, said that if the city wants to attract business and development, it also needs to change its attitude on permitting. “Many of us in this room have struggled with the city of West Palm Beach over the years,” Cook said.

City officials say the permitting process has improved.

Durham said he doubts West Palm residents would follow Palm Beach Gardens’ lead and give the commission authority to approve property tax exemptions for businesses that create jobs within the city. Nearly two-thirds of Gardens residents voted to do so last month.

Durham said the city made a mistake during the economic boom of the mid-2000s by focusing on residential units and restaurants in the downtown and not commercial buildings.

“A lot of downtowns would be jealous at all the residential we have, but the central business district is just that. It’s our business district,” Durham said. “You can’t run an economy off condominiums and restaurants. You need jobs, and if you want me to brings jobs here, we need to start building some Class A office space.”

Durham said Boca Raton, with more than 20,000 less residents than West Palm Beach, has double the amount of Class A space of West Palm Beach. Boca also charges less per square foot, he said.

West Palm, he said, has twice as much cheap, Class C office space as Boca and charges less for cheap space than Boca.

Durham said Mayor Jeri Muoio will announce a competitive incentive package for businesses at next month’s State of the City address, although he said it will be up to the city commission to approve it.

The city will focus on the marine industry in the north end and on bringing hi-tech jobs downtown, he said. While residents could be wary of incentives after the bankruptcy of the visual effects firm Digital Domain, Durham said, “I would do that deal again in a heartbeat. We’re trying to create a brand new industry cluster here in West Palm Beach.”